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We Settle Tax Debts Via Offer in Compromise

An Offer in Compromise is an agreement between a taxpayer and the IRS that resolves the taxpayer's tax debt. The IRS has the authority to settle --- or “compromise” --- federal tax liabilities by accepting less than full payment under certain circumstances. (Certain states also have Offer in Compromise programs too.)

The tax professionals at Clear Creek will personally guide you through the Offer in Compromise process, and we will manage all the details for you.

There are several reasons why you may be eligible for an Offer in Compromise:

  • There may be reasonable doubt about whether you are actually liable for the taxes you were assessed.

  • There may be no reasonable expectation that you can ever pay all the taxes you owe.

  • Even if the debt is legitimate and even if you could possibly pay it over time, there still may be some exceptional circumstance which would lead the IRS to accept an Offer in Compromise. For example, collecting the taxes might create an economic hardship, or might be unfair and inequitable for many reasons.

Offer in Compromise

The Offer in Compromise settlement program exists to provide taxpayers who cannot pay their tax liability in full, an opportunity to pay a portion of their liabilities to fully satisfy the debt. An Offer in Compromise is a formal agreement between a taxpayer and the IRS that resolves the taxpayer's past-due tax liability. The IRS has the authority to settle --- or “compromise” --- federal tax liabilities by accepting less than full payment under certain circumstances. The circumstances that must be met in order to have an Offer in Compromise accepted can be complex and require great diligence and oversight to ensure that one initially qualifies for an Offer in Compromise, and secondly, that the Offer in Compromise can be negotiated for the lowest amount possible.

Our philosophy at Clear Creek is to educate our clients on how the Offer in Compromise program works so as to not mislead any taxpayer to believe that just because one submits an Offer in Compromise, that it will be accepted. Many firms overtly suggest in their marketing and advertising material that their client’s will save ‘pennies on the dollar’ if they submit an Offer in Compromise.

The reality is, the IRS has a different perspective and this government branch will not stop short of trying to collect every last penny that is presumed owed to the Department of Treasury. For this reason, it is imperative to understand how this program applies to your individual financial condition, and how you can be assured protection, or peace of mind, until your Offer in Compromise is finalized.

Delivering Peace of Mind

The tax professionals at Clear Creek are trained to protect you from asset seizure while we assess if you are an Offer in Compromise candidate. If, after initial consultation, we believe that you are a candidate for having an Offer in Compromise accepted, we will review in great detail how the program works and what must be completed to satisfy your liability for pennies on the dollar.

In the event that we believe an Offer in Compromise is the best tactic for reducing your tax liability, however, there is work to be completed in advance of actually filing the Offer in Compromise, the tax professionals at Clear Creek will discuss how we will protect you from enforced collection while we manage this liability and this process, as it may take several months to be positioned for an Offer in Compromise to be accepted.

Once positioned for an Offer in Compromise, Clear Creek has an industry leading track record of getting our Client’s Offers in Compromise accepted and thereby saving our clients thousands of dollars. If, on the other hand, we believe that filing an Offer in Compromise will simply waste your time and resources, we will discuss in detail, other resolution strategies to minimize and fully resolve your tax liability. In some instances we may suggest a combination of resolution strategies to resolve the liability in question, so time and energy are not wasted, thereby increasing additional penalties and interest.

In any instance or for any liability, no matter how large or how complex, you can depend on Clear Creek to give you honest advice, and needed protection from levies or wage garnishments while we customize a resolution strategy that will free yourself from a tax liability. At Clear Creek we deliver peace of mind, one client at a time, by personally guiding you through the Offer in Compromise process or any other resolution that we consider to be a better avenue for your individual financial situation.